That investment planning strategy could create a generation of“ tax-free millionaires,” according to Adam Bergman, founder of IRA Financial and a tax and ERISA attorney, who said financial advisors should already be discussing the opportunity with young families and grandparents.

“ I’ m a big fan of this,” Bergman says.“ My company is going to maximize its contribution opportunity for employees’ families to help them generate real wealth.”

Most of the attention surrounding Trump Accounts has centered on the federal government’ s $ 1,000 seed contribution for eligible children born between 2025 and 2028. Bergman believes advisors are missing the much bigger planning opportunity.

“ This will create tax-free millionaires,” he says.“ If we fast-forward 30 or 40 years, these kids will turn into millionaires.”

Trump Accounts, formally known as Section 530A accounts, allow parents, grandparents and others to contribute up to $ 5,000 annually for children younger than 18. Employers also may contribute up to $ 2,500 annually, subject to the overall contribution limit. Unlike custodial Roth IRAs, children do not need earned income to receive contributions.

“ The biggest benefit of Trump Accounts is you can make contributions from the day a child is born,” Bergman says.“ Young kids don’ t have income.”

That feature alone makes the accounts unlike any retirement savings vehicle previously available to children, he says.

“ There are no income requirements. They have Roth-like features.”

During the beneficiary’ s childhood, contributions grow tax deferred in low-cost U. S. stock index funds and exchange-traded funds. On January 1 of the year the beneficiary turns 18, the account automatically converts to a traditional IRA.

That’ s where advisors have an opportunity to change a client’ s financial future.

Rather than simply leaving the account as a traditional IRA, Bergman says advisors should evaluate whether converting some or all of the balance into a Roth IRA makes sense while the young adult is in a relatively low tax bracket. Although income taxes are owed on the account’ s investment gains at conversion, future investment growth and qualified retirement withdrawals become permanently tax free. Even better, Roth IRA contributions— not earnings— can later be withdrawn tax- and penalty-free, creating flexibility for the child’ s major milestones such as buying a first home or launching a business.

“ The biggest challenge for young families is being able to buy their first home, build equity and manage debt,” Bergman says.“ Hopefully when these kids are in their 30s they can tap those tax-free contributions.”

For advisors, that creates a rare opportunity to help clients build wealth across generations while positioning children for decades of taxfree compounding.

“ If someone born today has $ 5,000 contributed every year and earns around an 8 % annual return, they’ ll have a tremendous head start,” he says.

His own firm plans to practice what he preaches.

“ Our company will contribute $ 1,000 for every employee’ s child beginning this year.”

Bergman says he already plans to encourage his own sons, ages 15 and 12, to convert their Trump Accounts into Roth IRAs when the timing is right.

“ As a tax lawyer, I’ ll happily pay the tax,” he says.“ I’ d rather lock in decades of taxfree growth.” He acknowledged the law isn’ t perfect.“ The only nitpicky thing I have is I wish it was Roth from the beginning,” Bergman said.“ But the government had to pay for it.”

But he believes the accounts represent one of the most significant wealth-building opportunities Congress has created for young Americans in decades.

The key, he says, is taking advantage of compound growth as early as possible.“ The power of compounding is enormous.” He also applauded lawmakers for restricting investments to simple, low-cost index funds during childhood.

“ I’ d start families off easy with the five simple, low-cost investments offered,” he says.“ Let’ s educate people. Once kids hit 18 they can roll into a Roth, and then they can branch out.”

For advisors, Trump Accounts also create a new planning conversation with clients who previously had few retirement savings options for children without earned income. Bergman says the accounts can complement— not replace— 529 plans, custodial brokerage accounts and other long-term savings strategies. His advice to parents and grandparents is simple:“ Instead of buying kids baseball cards,” Bergman says,“ fund the Trump Account.”

— Tracey Longo

SEPTEMBER / OCTOBER 2026 | FINANCIAL ADVISOR MAGAZINE | 11